Mitchell opined on policies tied to economics and energy

Houston Chronicle |
August 3, 2013

(For the Chronicle/Gary Fountain, January 12, 2012)
Pioneering oilman and developer George Mitchell, with an award from the annual conference of the Academy of Medicine, Engineering and Science of Texas, where he was honored.

Photo By Nick de la Torre/Staff

George Mitchell makes a few remarks as he's recognized by IHS-CERA with a lifetime achievement award for his involvement in shale gas development during a CERAWeek luncheon Wednesday, March 9, 2011, in the Hilton Americas hotel in Houston. ( Nick de la Torre / Houston Chronicle )

Photo By Karen Warren/Staff

George Mitchell, a wildcatter in the 1950s whose Mitchell Energy pioneered natural gas production from shale. Devon Energy bought Mitchell in 2002, and now Mitchell focuses on environmental issues. Photographed in his office, Tuesday, July 22, 2008, in Houston. ( Karen Warren / Chronicle )

Photo By DALE BLACKWELL/MBR

Mud flies as drillers pulled pipe from a Mitchell Energy & Development Corp. well in Wise County in May 2000.

Photo By Karen Warren/Staff

George Mitchell, a wildcatter in the 1950s whose Mitchell Energy pioneered natural gas production from shale. Devon Energy bought Mitchell in 2002, and now Mitchell focuses on environmental issues. Photographed in his office, Tuesday, July 22, 2008, in Houston. ( Karen Warren / Chronicle )

Photo By Karen Warren/Staff

People walk by the a statue of George Mitchell at Town Green Park, Monday, July 29, 2013, in The Woodlands. Mitchell died Friday at the age of 94. Memorial services have been set for Tuesday, August 6, 2013-Galveston, Texas. 5:30 pm: Service at Trinity Episcopal Church (2216 Ball Ave) and 7:00 pm: Gathering and celebration at Saengerfest Park (2302 Strand). George Mitchell will be remembered by family, friends, colleagues, and the Galveston community. Please dress comfortably for the Texas summer heat. These events are open to the public.( Karen Warren / Houston Chronicle )

Photo By Karen Warren/Staff

George Mitchell was a wildcatter in the 1950s whose Mitchell Energy pioneered natural gas production from shale.

The U.S. needs to reduce its dependence on foreign oil

See you in line in '89

Sept. 28, 1986

Seventy-five percent of the world's oil is controlled by governments, not companies. And 42 percent of the world's petroleum reserves are concentrated among a tiny handful of nations - Saudi Arabia, Kuwait, Qatar and the United Arab Emirates - which constitute a "mini-cartel" within the Organization of Petroleum Exporting Countries. For economic or political reasons, the mini-cartel has the power to create surplus or shortage, feast or famine, virtually overnight.

The only sure way to counter America's growing dependence on foreign petroleum is through the imposition of a temporary, variable fee on all imported oil, natural gas and petrochemicals. ... Revenues collected by the government could be used to help reduce the federal deficit, fill the Strategic Petroleum Reserve or develop alternative energy sources.

... The petroleum industry needs to get its act together, and Washington needs to exercise some leadership. With concerted effort on both parts, we can reduce our military and economic vulnerability and avoid a repeat of the gasoline shortage traumas of the last decade.

Time to undertake an energy cure

April 16, 1987

The domestic energy industry fell off the wall in 1985, and it will take a long time to put it together again. Hundreds of thousands of engineers, geologists, rig hands and others have been laid off. Thousands of producers and service industry companies have gone into bankruptcy or closed altogether. For lack of drilling, oil reserves are being depleted. Rigs are rusting away.

Because of these losses, while Washington lumbered to the conclusion that something profoundly important was under way, the petroleum industry's infrastructure came unglued. Now, even if there were immediate large increases in oil prices, it's not conceivable that America's oil production capacity could return to mid-1985 levels in less than four years.

That's not enough. Our goal should be 75-80 percent energy self-sufficiency. The only way to reach that level is to exploit our vast natural gas resources. We have the potential to produce 11 trillion more cubic feet of gas each year - an increase of two-thirds over the present level. This added production would take the place of 5 million barrels of oil imported daily, bringing our dependence into a far less threatening range.

The U.S. needs an energy policy

For a presidential energy commission

Nov. 15, 1987

Because domestic petroleum was cheap and plentiful, it hardly mattered until recent years that the United States lacked an energy policy. Now, however, we are dependent on imported oil and energy has become a corrosive political and economic issue, with one special interest more strident than the next. Unless we quickly find a way to manage our energy affairs, we shall indeed all hang separately.

An energy solution for the 21st century - or next energy crisis. Even at the depths of the oil glut in 1988, Mitchell had his eye on natural gas an energy solution for the next century.

Natural gas is there - but only at a fair price

Oct. 26, 1988

HOORAY! We've been saved from the next energy crisis. There's a wonderful thing called natural gas; it is to energy problems what aspirin is to headaches. In the lower 48 states, with existing technology, we've got a supply large enough to take us well into the 21st century, maybe more.

That really is the truth, partly. But America needs to be told the whole truth, and that is that the lunch will not be free, that natural gas can fulfill its many promises but only at a price.

What are those promises? Substituting for as much as 1 million barrels of imported oil daily, reducing the balance of payments deficit by $6 billion a year or more, creating American jobs, giving the environment a break.

This Chronicle Outlook piece was published a week after Saddam Hussein's Iraqi forces had invaded Kuwait and on the day President George H.W. Bush announced that 200,000 U.S. forces had been deployed to the region to protect the Kingdom of Saudi Arabia. Mitchell's words reflect the contemporary concern over the growing likelihood of conflict with the Iraqi dictator.

Blame oil shortsightedness, not price gouging

Aug. 8, 1990

For years, those who ought to know better looked the other way as the nation's ability to find and produce domestic oil and gas reserves strangled on artificially low prices and our dependence on the world's most unstable region rose by leaps and bounds. Now, the chickens are coming home to roost in the form of sharply higher petroleum prices, a plummeting stock market, a self-imposed supply disruption and the very real threat of warfare on a scale not seen since World War II.

What does all this mean to Texans? Economically, any increase in price will be good for the oil-producing states. ... In the long run, higher oil prices - if sustained - will be good for the nation, but only after a painful period of adjustment. We can develop a host of renewable-energy sources that will provide us with a measure of energy independence and a cleaner environment. We can reduce the trade deficit and the exportation of American jobs - but only ... when we stop subsidizing foreign producers and trade competitors by keeping the oil-supply lines open, free of charge, with our military might.

Mitchell kept the pressure on politicians to develop a comprehensive energy plan.

The natural gas bubble has burst, and there's still no U.S. energy policy

Sept. 20, 1992

Well, it finally happened. While nobody was looking, the natural gas "bubble" burst. Rising demand is colliding with falling supply. Prices are climbing at a time when they have been extremely soft in past years. ...

No politician will acknowledge a role in these events, of course, but the truth of the matter is that political actions - and inactions - were major causes of the demise of the U.S. energy industry and the national vulnerability that has resulted. And today, incredibly, we still have no real energy policy other than a willingness to go to war whenever our foreign sources of supply are threatened.

As a domestic independent, I should be happy. Natural gas prices are improving, and I don't have as many competitors as I used to have. But, frankly, I don't like these boom-and-bust cycles. They are not good for our long-term business...

A proponent of suburban communities, Mitchell recognized the importance of a strong central core, the city of Houston.

Houston's good health key to region's vitality

Sept. 16, 1996

In the year 2020, according to the University of Houston's Center for Public Policy, the Houston region's population will be approaching 5.5 million. As we look ahead, our focus must include maintaining the region's global economic vitality along with seeing that various neighborhoods continue to enjoy an excellent living environment. This is not a simple task.

At the region's core is Houston. For the region to remain healthy, Houston must retain its vitality. We cannot let Houston be drained of its economic strength.

In the past, we have seen the devastating results of major central cities deteriorating when their resources were sapped by erosion of financial resources and population base.

In many of those cases, small, separately incorporated municipalities that encircled the central cities made regional coordination impossible.

At the same time, many residents who live in neighborhoods within the city and within the unincorporated areas near Houston, including those within the city's extraterritorial jurisdiction, are concerned about their own interests ...

We have suburban communities that have become important commercial centers as well as population centers.

These communities offer choices to newcomers and longtime residents alike.

The challenge facing us all is to find common ground on which we can stand together and work together to accommodate the needs of these various segments while assuring that the region's long-term interests are also well-served.

Mitchell was writing on the eve of the Kyoto Summit on Climate Change when he addressed the topics of greenhouse warming and climate change, and how the oil and gas industry could best respond to changing times and policies. The oilman acknowledged the growing scientific consensus on global warming and the uncertainties it presented to his industry. He counseled industry to use the "precautionary principle" - creating strategies to deal with global warming without delay.

Temperature rising

Nov. 23, 1997

Because the climate system - and the human impact on it - is complex, providing answers to these questions is a great challenge to scientists all over the world.

These questions also affect decision-makers as they strive to develop sound policies to address a difficult situation. The business community in general, and the electric utility and oil and gas industries in particular, also are heavily affected.

How should a company address global climate change when the issue involves such uncertainty?

... Companies might begin by adopting the "precautionary principle."

This practice follows the idea that, where there are threats of serious or irreversible damage resulting from an environmental problem, mitigating action should be taken to address the problem - even if the evidence regarding it is currently inconclusive.

We all practice the precautionary principle when we invest in health and home insurance or perform preventive maintenance on our cars. We want to be protected from unpleasant surprises.

... Rather than remaining on the sidelines, pro-active companies participate in the formation of public policy to deal with global climate change.

Such companies also enjoy greater access to international and emerging markets by offering power generation technology solutions that are cleaner and more efficient than traditional technologies.

In his final piece for the Chronicle, co-authored with geophysicist Mark D. Zoback, Mitchell addressed environmental concerns and the need for producers to be responsible with hydraulic fracturing.

Duty to fracture responsibly

Feb. 19, 2012

Natural gas is a wondrous fuel. It emits less carbon dioxide, less mercury, less nitrogen oxide, less sulfur oxide than any other hydrocarbon energy source. Natural gas is the perfect bridge fuel on the way to a less carbon-dependent economy. There is no question that accidents have occurred and mistakes have been made during the rush to develop this vast new resource, but this remarkable resource can be developed by industry following region-specific best practices and regulators carefully monitoring industry activities.

... As time moves on, responsible energy companies learn more, continuously improve procedures and incorporate feedback from the communities and environments most affected by each company's progress. The DOE committee recommended that it is equally important that there be a continuous improvement of best practices for minimizing impacts on the environment, communities and ecosystems.

As our nation develops this great and unexpected resource, all stakeholders - gas producing companies, service companies and suppliers, affected communities, public interest advocates, and regulators - must be sought out and integrated for our country to fully realize this promise.

Over nearly four decades, George P. Mitchell was a distinguished contributor to the Houston Chronicle's Outlook pages.

Time and again, the Houston oilman's writings revealed a mind with a keen grasp of the big picture, coupled with a thorough knowledge of detail. His powers of observation and connectivity were unmatched, earning this native son of Galveston a place on Foreign Policy magazine's Top 100 Global Thinkers in November 2011. He belonged in that elite company.

Mitchell's world extended as far as his considerable imagination would carry him, which is to say, to the very limits of the known universe. His comments were prescient, incisive and timely, and crafted with an admirable economy of words. Here are selections of Mitchell's wisdom from across the years.